Generally reinvest dividends since they are nominal. Holding stock is generally done for the price fluctuations...

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Finance

Generally reinvest dividends since they are nominal.Holding stock is generally done for the price fluctuations ratherthan the dividends. However, dividends are a key measure forstocks. What do dividends tell investors? Is the amount importantor the consistency of the dividends important?

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Dividends are an important tool for signalling the future financial prospects of the company to investors If a company in growth stage does not pay dividends it signifies that the company has See Answer

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Generally reinvest dividends since they are nominal. Holding stock is generally done for the price fluctuations...

80.2K

Verified Solution

Question

Finance

Generally reinvest dividends since they are nominal.Holding stock is generally done for the price fluctuations ratherthan the dividends. However, dividends are a key measure forstocks. What do dividends tell investors? Is the amount importantor the consistency of the dividends important?

Answer & Explanation Solved by verified expert

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